(a) The fund for veterans’ assistance is a special fund in the state treasury outside the general revenue fund. The fund is composed of:
(1) money transferred to the fund at the direction of the legislature;
(2) gifts and grants contributed to the fund;
(3) the earnings of the fund;
(4) money transferred to the fund from proceeds of the lottery game operated under § 466.027 or transferred to the fund under § 466.408(b);
(5) money deposited to the credit of the fund under § 502.1746, Transportation Code;
(6) money deposited to the credit of the fund under Sections 521.008 and 522.0295, Transportation Code;
(7) money deposited to the credit of the fund under § 12.007, Parks and Wildlife Code; and
(8) money deposited to the credit of the fund under § 411.1741.
(b) Except as provided by Subsections (c) and (e), money in the fund may not be appropriated for any purpose.

(c) Money in the fund may only be appropriated to the Texas Veterans Commission. Money appropriated under this subsection shall be used to:
(1) make grants to address veterans’ needs;
(2) make grants to provide pro bono legal services to veterans, active duty members of the United States armed forces, and members of the state military forces;
(3) administer the fund; and
(4) analyze and investigate data received from the federal Public Assistance Reporting Information System (PARIS) that is administered by the Administration for Children and Families of the United States Department of Health and Human Services.
(c-1) Every four years, the commission shall:
(1) conduct a needs assessment to identify the specific high-priority needs of veterans and the services available to address those needs;
(2) determine the grant categories that correspond to the needs identified under Subdivision (1); and
(3) identify any discrepancy between the needs identified under Subdivision (1) and the services available to address those needs.
(c-2) On completion of the needs assessment and other determinations under Subsection (c-1), the commission shall incorporate the results of the assessment and determinations into the commission’s process for awarding grants from the fund for veterans’ assistance.
(c-3) In making the grants required under Subsection (c), the Texas Veterans Commission shall use at least five percent of the money appropriated to the commission under that subsection in each state fiscal year to provide grants to veterans county service offices created as provided by § 434.032. A veterans county service office that receives a grant under Subsection (c) shall use the money to provide direct assistance and services to veterans residing in the county served by that office. On July 1 of each state fiscal year, if the commission has not received sufficient grant requests from veterans county service offices to make grants to the offices in the amount of five percent of the money appropriated to the commission under Subsection (c) in that state fiscal year, the commission may use any amount of the five percent remaining on that date for any purpose authorized under that subsection. This subsection may not be construed to prevent the commission from using more than five percent of the money appropriated to the commission under Subsection (c) to provide grants to veterans county service offices.
(c-4) The commission shall publish the most recent needs assessment under Subsection (c-1) on the commission’s Internet website.
(d) The Texas Veterans Commission may adopt rules governing the award of grants by the commission under this section. The commission shall adopt rules governing the award of grants to veterans county service offices under Subsection (c-3).
(e) To carry out any purpose of this chapter, the commission may solicit, accept, or refuse a gift, grant, devise, bequest of money, security, service, or property, including money raised or a service provided by a volunteer or volunteer group, to promote the work of the commission for any purpose related to the fund for veterans’ assistance. The commission may participate in the establishment and operation of an affiliated nonprofit organization that is established for the purpose of raising money for or providing services or other benefits to the commission or a program established in the commission, including the Texas Women Veterans Program. A gift, grant, devise, or bequest to the fund may be appropriated in the same manner as other money in the fund, subject to the purposes provided by Subsection (c) and any limitation or requirement placed on the gift, grant, devise, or bequest by the donor or granting entity.
(f) Sections 403.095 and 404.071 do not apply to the fund.